JAYANT S. CHHEDA, MUMBAI v. ACIT 7(1), MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL J BENCH MUMBAI BEFORE SHRI H.L.KARWA PRESIDENT & SHRI N.K.BILLAIYA AM ITA NO . 8623 / MUM/ 20 1 1 ( ASSESSMENT YEAR : 20 0 8 - 20 0 9 ) JAYANT S. CHHEDA 4 TH FLOOR B WING RUBY HOUSE J.K.SAWANT MARG DADAR (W) MUMBAI - 28. VS. A CIT RANGE 7(1) MUMBAI PAN/GIR NO. : A A BPC 1336 Q ( APPELLAN T ) .. ( RESPONDENT ) /ASSESSEE BY : MS. MRUGAKSHI K. JOSHI /REVENUE BY : MR. SHISHIR SRIVASTAVA DATE OF HEARING : 2 4 TH DATE OF PRONOUNCEMENT : 2 4 TH OCTOBER 2013 O R D E R PER N.K.BILLAIYA AM : THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST THE ORDER OF THE CIT(A) - 20 MUMBAI DATED 9 - 11 - 2011 PERTAINING TO ASSESSMENT YEAR 20 0 8 - 200 9 . 2 . THE SOLE GRIEVANCE OF THE ASSESSEE IS THAT THE CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE OF RS. 1 28 084/ - MADE BY THE AO UNDER SECTION 14A READ WITH RULE 8D OF THE ACT. 3 . DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS THE AO NOTICED THAT THE ASSESSEE HAS CLAIMED RS. 1 00 500/ - AS EXEMPT DIVIDEN D INCOME UNDER SECTION 10(34) OF THE ACT. THE ASSESSEE WAS ASKED AS TO WHY THE EXPENDITURE SHOULD NOT BE DISALLOWED FOR EARNING THIS EXEMPT INCOME AS PER PROVISIONS OF SECTION 14A READ WITH RULE ITA NO. 8623 /1 1 2 8D. THE ASSESSEE FILED A LETTER DATED 18 - 11 - 2010 AND COMPUTED THE DISALLOWANCE UNDER SECTION 14A AMOUNTING TO RS. 1 28 084/ - . THE AO ACCEPTED ASSESSEES COMPUTATION AND DISALLOWED RS. 1 28 084/ - . 4 . BEFORE THE CIT(A) THE ASSESSEE TOOK AN ALTERNATIVE PLEA THAT THE DISALLOWANCE SHOULD BE RESTRICTED TO THE INCOME EARNED I.E. RS. 1 00 500/ - . THE CIT(A) WHILE DISMISSING THE APPEAL OBSERVED THAT THERE IS NO PROPOSITION OF LAW THAT DISALLOWANCE OF EXPENDITURE SHOULD BE RESTRICTED TO THE EARNING OF EXEMPT INCOME ONLY 5 . BEFORE US THE COUNSEL REITERATED HER ALTERNATIVE PLEA . A PERUSAL OF THE ASSESSMENT ORDER CLEARLY SHOWS THAT THE AO HAS DISALLOWED THE AMOUNT UNDER SECTION 14A READ WITH RULE 8D AS PER ASSESSEES OWN CALCULATION. THEREFORE WE DO NOT FIND ANY MERIT IN THE CASE OF THE ASSESSEE. ACCORDINGLY WE DISMISS THE APPE AL OF THE ASSESSEE. 6 . RESULTANTLY THE APPEAL OF THE ASSESSEE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 2 4 /10/ 2013 . SD/ - ( ) ( H.L.KARWA ) SD/ - ( ) ( N.K.BILLAIYA ) / PRESIDENT / ACCOUNTANT MEMBER MUMBAI ; DATED : 2 4 /10 /2013 /PKM PS COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) MUMBAI. ITA NO. 8623 /1 1 3 4. / CIT 5. / DR ITAT MUMBAI 6. GUARD FILE. //TRUE COPY// / BY ORDER ( ASSTT. REGISTRAR) / ITAT MUMBAI